The Oil Drum

287 comments on DrumBeat: October 30, 2007

Comments can no longer be added to this story.

PeakTO on October 30, 2007 - 9:54am

Some more on Food:

Poor outlook for grain stokes fight over biofuels

http://www.smh.com.au/news/national/poor-outlook-for-grain-stokes-fight-...

FOOD producers who rely on feed grain stepped up their attack on biofuels yesterday as the forecast for Australia's grain harvest was slashed by another 4.5 million tonnes after two more months of exceptionally warm, dry weather.

The dairy, pork, egg and feedlot beef sectors said the global demand for grain to produce ethanol was causing record grain prices, food inflation and job losses.

-snip-

Ethanol industry supporters argue that grain prices have been unrealistically low for decades and the grain shortage is due to the weather.

Contains updates on Australian grain output.

Hoarders create artificial shortage to raise flour rates

http://thepost.com.pk/CorpNewsT.aspx?dtlid=125839&catid=8

Hoarders have stocked over 1 million tonne wheat to create an artificial shortage and raised prices of the commodity, officials said.

-snip-

The price of wheat is $ 200 per tonne in Pakistan whereas the price of wheat in international market is around $ 400 per tonne. This gave economic justification to smugglers to send wheat through illegal ways to India, Afghanistan and Central Asian Republics

How long do you think these many countries can keep these prices low internally?!

Arbitrage is part of a free market system. If a farmer that makes only $200 per year can make $400...I bet he will go to great lengths to get it to a stronger market.

Comments can no longer be added to this story.

mcgowanmc on October 30, 2007 - 10:23am

The SMH article refuses to break out the grains number ,
lumping barley, canola in with wheat.

But the 4.5 million ton drop would bring the wheat crop down to 9.5 million tons if the Ozzies are using the 13.5
million ton number.

The Oil Drum | World Energy and Population: Trends to 2100
An Ozzie said (from an FT article) that if no rain is received in three weeks, then disaster. Right now the wheat forecast is 13.5 million tons, ...

www.theoildrum.com/node/3091/250747

Note that most/all are still using the 15.5 ton number.

Australia needs 5 mt for domestic consuption.
Last year's harvest was 9.8 mt.

I'm still looking for closer to 7 mt.
The Oil Drum | World Energy and Population: Trends to 2100
An Ozzie said (from an FT article) that if no rain is received in three weeks, then disaster. Right now the wheat forecast is 13.5 million tons, ...

www.theoildrum.com/node/3091/250747

Thanx for the find.

Arkansaw of Samuel L Clemens